Puma Hotels - Final Results for the year ended 31 December 2009
(Thomson Reuters ONE) -
29 March
2010
Puma Hotels plc
Final results for the year ended 31 December 2009
Puma Hotels plc ("PHP" or "the Company") owner of the freehold property interest
in 20 leading UK hotels, announces its final results for the year ended 31
December 2009.
2009 2008
(Audited) (Audited)
Turnover £30.0m £28.5m
Interest payable and similar charges excluding payments
to bondholders and notional finance costs on preference
shares of £4.7m ("Shareholder Finance Costs") (£25.6m) (£25.5m)
Other administrative expenses (excluding exceptional (£3.8m) (£4.5m)
items of £2.1m)
Operating Profit / (loss) before exceptional items and
Shareholder Finance Costs £0.6m (£1.5m)
Highlights
* Strong growth in Operating Profit during 2009
* Term of senior debt facility extended by three years to 31 December 2012
* £20 million equity raising successfully completed
* Significant planning permissions secured:
* 107 bedroom lodge hotel in Harrogate;
* 42 additional bedrooms, conference space, bar and restaurant at Brighton
Old Ship
Howard Shore, Chairman of Puma Hotels plc, said:
"The Company is well placed to maximise shareholder value having extended the
maturity of the senior facility, and having reduced interest costs and operating
overhead. The planning permissions secured in Harrogate and Brighton represent
valuable additions to an already substantial development bank across the
portfolio from which the Company expects to realise value as the hotel operating
environment improves."
Press Enquiries:
Puma Hotels plc
+----------------+---------------+
| Howard Shore | 020 7468 7911 |
+----------------+---------------+
| Peter Procopis | 020 7468 7913 |
+----------------+---------------+
Notes to Editors
1.Puma Hotels plc acquired 13 Paramount branded hotels in July 2004. Following
further acquisitions it now owns 20 four-star hotels across Scotland, Northern
England, Central England, Southern England and Wales. See the table below for a
full list of hotels.
2. The hotels offer extensive banqueting, conference and leisure facilities and
many of them have architectural and historical significance. The Group has
2,872 bedrooms and around 20,000 square metres of conference and meeting
space and offers extensive facilities to both corporate and leisure guests.
3. From July 2004 until 6 September 2007, PHP owned and operated each of the
20 hotels. From 6 September 2007 PHP granted 45 year FRI leases for each
hotel to Barceló Group, a leading Spanish operator with substantial global
operations. Since 1 January 2008 all 20 hotels carry the Barceló brand.
4. PHP's hotel locations are shown below:
No. of meeting Health & Location
CENTRAL ENGLAND Bedrooms rooms Leisure
Barceló Billesley 12 Y
Manor Hotel, Nr.
1 Stratford* 72 Country
Barceló Cheltenham 11 Y
2 Park Hotel 152 Country
Barceló Daventry 8 Y
3 Hotel 155 Country
Barceló Hinckley 21 Y
4 Island Hotel 362 Country
5 Barceló Oxford Hotel 168 25 Y City
Barceló Buxton 9 Y
6 Palace Hotel 122 Country
Barceló Walton Hall 20 Y
Hotel & Spa,
7 Warwickshire* + 202 Country
Barceló The Lygon 8 Y
8 Arms, Cotswolds* 77 Country
NORTHERN ENGLAND
Barceló Blackpool 15 Y
9 Imperial Hotel 180 Coast
Barceló Harrogate 10 Y
10 Majestic Hotel 167 City
Barceló Redworth Hall 10 Y
11 Hotel, Co. Durham* 143 Country
12 Barceló Shrigley Hall 148 12 Y Country
Hotel, Cheshire*
SCOTLAND
Barceló Edinburgh 10 Y
13 Carlton Hotel 189 City
Barceló Troon Marine 4 Y
14 Hotel* 89 Coast
Barceló Stirling 7 Y
15 Highland Hotel 96 City
SOUTHERN ENGLAND
Barceló Combe Grove 5 Y
16 Manor, Bath* 42 Country
Barceló Basingstoke 10 Y
17 Country Hotel 100 Country
Barceló Torquay 7 Y
18 Imperial Hotel 152 Coast
Barceló Brighton Old 11 N
19 Ship Hotel 154 Coast
WALES
Barceló Cardiff 7 N
20 Angel Hotel 102 City
Total 2,872 222
* Barceló Premium Hotels
+ Operationally, Barceló split this property into a Barceló Premium Hotel,
Barceló Walton Hall and a Barceló Hotel, Barceló Walton Hotel
Chairman's Statement
Introduction
Since the granting of leases to Barceló Group ("Barceló") on 6 September 2007,
Puma Hotels plc ("PHP" or the "Group") trades as an owner of hotel property
receiving income from property rents. The Company's hotels are let on 45 year
FRI leases to Barceló, a leading Spanish hospitality group with substantial
global hotel and other leisure related operations.
Financial Performance
Turnover for the year ended 31 December 2009 of £30.0m represents rent received
from Barceló (2008: £28.5m). Operating profit of £24.0m (2008: £20.6m) has grown
over the prior year reflecting the benefit of the increase in rent and the
reduction in overhead costs.
After deducting bank interest payable on the Company's senior facility, the
Group showed a net profit of £0.6m (2008: Loss of £1.5m) before bank interest,
Shareholder Finance Costs and exceptional items. The Shareholder Finance Costs
comprise £4m of payments to bondholders of the Company's deep discounted bonds
and a notional, non-cash finance charge relating to the convertible preference
shares of £0.7m[1]. The exceptional item is the non-cash charge of the deficit
on revaluation of properties of £2.1m. Therefore, after deducting these items
the loss on ordinary activities for the year is £6.2m (2008: £8.8m).
Net bank interest payable was flat against the prior year. As previously
reported the maturity of the Company's senior facility with Anglo Irish Bank was
extended by three years to 31 December 2012. The effective date of this
extension was 13 July 2009, at which time the margin on the facility increased
from 175bps to 250bps. The additional interest arising from the increased
margin was largely offset by a lower cost of funding and by the reduction in the
principal amount of the facility. Commencing on 1 January 2010, the new
interest rate SWAPs executed in April 2009, are in operation and will reduce
annual interest costs by an average of £3.5m p.a. over the next three years
(compared to interest payable for the year ended 31 December 2009).
As discussed below, PHP has had the leased properties professionally revalued as
at 31 December 2009 and, as a result, is now carrying its entire portfolio at a
total value of £463.2m (2008: £483.5m). As part of the revaluation process,
each individual property has been assigned a new value, in some cases
eliminating the brought forward valuation surplus, hence leading to a charge to
the profit and loss account of £2.1m (2007:£3.3m). This charge is a non-cash
item which is shown as a "deficit on revaluation". The remainder of the
revaluation deficit has been taken against the valuation surplus in the balance
sheet after which the 31 December 2009 balance of the revaluation reserve is
£84.7m (2008: £105.1m).
The asset values on the balance sheet of PHP reflect the lease arrangements with
Barceló. These leases place full repairing and insuring ("FRI") obligations on
the tenant and provide guaranteed rental growth over the first four years; this
is inflation-indexed thereafter and can also increase if hotel EBITDA (as
defined in the agreement with Barceló) performs well.
In addition to the tenant's FRI obligation, the agreement with Barceló also
provides for a £10m capital expenditure contribution to be made by PHP in the
first 10 years of the leases. This contribution is to be spent on structural
and mechanical improvements by Barceló. To date, PHP has contributed £4.3m of
which Barceló have spent £2.3m during 2009 bringing the total spent by Barceló
since inception of the lease to £3.0m. The amount spent during 2009 is
capitalised by PHP and taken into account when calculating the year end
valuation adjustment.
Since inception of the leases, Barceló have also spent a significant amount of
their own funds on capital improvements and on repairs and maintenance
expenditure.
For the purpose of preparing its annual financial statements for 2009, PHP has
had the property subject to these leases professionally valued by Colliers
Robert Barry. This valuation of each property in the portfolio, which excludes
land held for development and other assets not subject to the Barceló lease, is
at £460.2m. The Board of PHP considers that the current value of the assets
excluded from the lease is a further £3.0m.
Against the backdrop of a general decline in the hotel operating environment,
the 31 December 2009 valuation has fallen by a modest 4.2% from the 2008
valuation, reflecting the quality of the assets, capital expenditure made and an
improvement in the general investment market.
Anglo Irish Bank Debt Facility Extension
* The facility was reduced to £332.3m from its previous ceiling of £350m (of
which £347.5m was drawn) on 13 July 2009. PHP funded this reduction,
together with associated costs, by raising an additional £20m in new equity
primarily from the Company's existing shareholders.
* The new equity was issued in the form of cumulative convertible preference
shares. These preference shares bear a cumulative 7% p.a. coupon beginning
in 2010 and are convertible into new ordinary shares on a 1 for 1 basis. Of
the £20m subscribed, £11.77m was subscribed by The Hotel Corporation plc,
the AIM-listed investment company which owns 49.92% of the Company's
ordinary shares.
* Anglo Irish have agreed that there will be no further loan to value covenant
testing for the duration of the facility (i.e. up to and including 31
December 2012). This provides significant stability to shareholders in the
current market.
* The margin on the facility has increased from 1.75% to 2.5% from 13 July
2009.
* The maturity of the Group's outstanding bonds has also been extended to
align it with the Bank facility, although approximately £2m of these bonds
was, as previously scheduled, redeemed on 30 June 2009. Also, the
outstanding bonds have been listed on the Channel Islands Stock Exchange and
continue to earn a return of 12% per annum.
Development Plans
In the past, PHP has successfully exploited the potential for gains in value
through developing the portfolio by adding extra rooms, conference and other
facilities. PHP continues to seek additional planning permissions as well as
to monitor and protect planning permissions already granted. Three significant
applications lodged during 2009 were determined in February 2010, and PHP
secured these planning consents:
1. Harrogate Lodge Hotel: Granted by Harrogate Borough Council this planning
consent allows for the development of a 107 bedroom lodge hotel on land that
is part of the development assets excluded from the Barceló lease. The
proposed hotel will be directly linked into a new 3,400 sq m exhibition
facility which is to be built as part of the first phase in the
redevelopment of the Harrogate International Centre (HIC), approval for
which was granted at the same time as that for the 107 bedroom lodge. We
are in discussions with branded hotel companies in relation to this
development opportunity.
As part of our discussions with the HIC, their building plans will also provide
improved access into the HIC from the four star 170 bedroom Barceló Majestic
Hotel, for which a planning consent already exists to extend the hotel by a
further 85 bedrooms.
2. Brighton Old Ship Hotel: Planning consent has been secured for a 3,000 sq m
development at this waterfront, city centre hotel which will add 42 bedrooms
(a 27% increase to existing room stock), a 248 sq m conference facility and
124 sq m of bar and restaurant facilities.
3. Gatehouse at Combe Grove Manor: Planning and listed building consent
obtained for a 30% extension of the internal space at this attractive
residential property that is part of the development assets excluded from
the Barceló lease.
In overall terms, PHP has the potential to add over 800 rooms (over 25 per cent
of the current estate) of which 519 rooms (2008: 370 rooms, therefore a 40%
increase in consented rooms) have already received the necessary planning or
listed building consent. There are also schemes for over 3,000 sq m (of which
over 70% have planning consent) of additional meeting rooms and upgrades for
several leisure clubs. The economics of adding these rooms and other facilities
can be highly attractive for both PHP and Barceló. The value of the development
potential of the portfolio is not typically fully recognised in a professional
valuation and PHP therefore believes that fulfilling the programme may add
significantly to net asset value over time.
Strategy and Plans
Having concluded the extension of the maturity of its senior debt facility to
31 December 2012, PHP has significantly strengthened its financial position. In
addition, the interest rate SWAPs put in place and the reduction in overhead,
provide predictability over the Company's cashflows. Whilst the value of the
Group's assets reflects a modest reduction, rental income has increased. The
Company's financial position is further supported by Barceló's strong covenant
which has proven to be of significant benefit during the turbulent operating
environment which has impacted the global hotel sector over the last two years.
In the medium term, there is also the opportunity to unlock significant value by
gaining additional planning consents, executing the Group's development plans
and considering selective asset disposals as the investment market recovers.
The Board considers that as the investment market recovers, the Group's assets
should once again prove highly attractive because of the longevity of the leases
and the associated indexation. The extended maturity of the senior debt
provides the flexibility to optimise the potential returns to shareholders with
the intention of liquidating assets and returning capital to investors prior to
the new maturity of the senior debt and shareholder bonds.
Post balance sheet date events
As detailed above, three planning consents which were lodged during 2009 were
determined in February 2010. Therefore, PHP has secured consent for a 107
bedroom lodge on land excluded from the Barceló lease at Harrogate. At the
Barceló Old Ship Hotel, Brighton PHP secured consent for a 3,000 sq m
development which includes 42 bedrooms, 248 sq m of meeting space, and 124 sq m
of bar and restaurant facilities. At the Gatehouse at Combe Grove, planning and
listed building consent has been obtained for a 30% extension of the internal
space at this attractive residential property that is part of the development
assets excluded from the Barceló lease.
Prospects
The Company is well placed to maximise shareholder value having extended the
maturity of the senior facility, and having reduced interest costs and operating
overheads. The planning permissions secured represent valuable additions to an
already substantial development bank across the portfolio from which the Company
expects to realise value as the hotel operating environment improves. Looking
ahead, the rent from Barceló is due to increase to £31 million in September
2010 and is RPI linked thereafter.
Howard Shore
Chairman
25 March 2010
Puma Hotels plc
Consolidated Profit and Loss Account
Year ended 31 December 2009
Year Year
ended ended
31 31
December December
2009 2008
£'000 £'000
TURNOVER 30,000 28,455
Cost of sales - -
GROSS PROFIT 30,000 28,455
Other administrative expenses (3,873) (4,540)
Administrative expenses - exceptional (2,102) (3,283)
(Deficit on revaluation of properties)
Total administrative expenses (5,975) (7,823)
OPERATING PROFIT 24,025 20,632
Interest receivable and similar income 39 71
Interest payable and similar charges (30,301) (29,482)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (6,237) (8,779
Tax on loss on ordinary activities - 3
LOSS FOR THE FINANCIAL YEAR (6,237) (8,776)
RETAINED LOSS FOR THE FINANCIAL YEAR (6,237) (8,776)
Puma Hotels plc
Consolidated and Company Balance Sheet
Year ended 31 December 2009
Group Company Group Company
As at 31 As at 31 As at 31 As at 31
December December December December
2009 2009 2008 2008
£'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets -
goodwill 7,960 - 8,481 -
Tangible assets 463,170 - 483,520 -
Investments - 469,668 - 469,668
471,130 469,668 492,001 469,668
CURRENT ASSETS
Debtors 1,494 556,286 2,387 479,376
Cash at bank and in hand 8,689 8,689 8,748 8,748
10,183 564,975 11,135 488,124
CREDITORS: amounts
falling due within one
year (13,992) (404,892) (361,846) (625,872)
NET CURRENT
(LIABILITIES)/ASSETS (3,809) 160,083 (350,711) (137,748)
TOTAL ASSETS LESS
CURRENT LIABILITIES 467,321 629,751 141,290 331,920
CREDITORS: amounts
falling due after more
than one year (385,095) (302,355) (33,155) -
PROVISION FOR
LIABILITIES - - - -
NET ASSETS 82,226 327,396 108,135 331,920
CAPITAL AND RESERVES
Called up share capital 1,658 1,658 1,658 1,658
Share premium account 32,137 32,137 32,137 32,137
Revaluation reserve 84,732 - 105,104 -
Profit and loss account (36,301) 293,601 (30,764) 298,125
EQUITY SHAREHOLDERS'
FUNDS 82,226 327,396 108,135 331,920
Puma Hotels plc
Consolidated Statement of Total Recognised Gains and Losses
Year ended 31 December 2009
Year ended 31 December Period ended 31 December
2009 2008
£'000 £'000
Loss for the financial
period (6,237) (8,776)
Unrealised (deficit) on
revaluation of properties (20,372) (44,321)
Total recognised losses
relating to the year (26,609) (53,097)
Puma Hotels plc
Consolidated Cashflow statement
Year ended 31 December 2009
Year
ended 31
December Period ended 31 December
2009 2008
£'000 £'000
Net cash inflow from operating
activities 26,636 18,621
Returns on investments and servicing
of finance
Interest received 39 71
Interest paid (27,894) (26,480)
Interest paid on finance leases - (12)
Dividends paid - -
Net cash outflow from returns on
investments and servicing of finance (27,855) (26,421)
Taxation
Corporation tax paid - -
Capital expenditure
Purchase of tangible fixed assets (2,587) (1,564)
Sale of tangible fixed assets 463 -
Net cash outflow from capital
expenditure and financial investment (2,124) (1,564)
Net cash outflow before financing (3,343) (9,364)
Financing
New term loans raised - 13,929
Issue of preference share capital 20,000 -
Term loans repaid (15,000) -
Bonds repaid (1,124) (2,448)
New term loan issue costs (592) (195)
Repayment of principal under finance
leases - (153)
Net cash inflow from financing 3,284 11,133
Increase in cash (59) 1,769
Note
The accounting policies used in arriving at these figures are consistent with
those which will be published with the full financial statements. There are no
changes in accounting policies from those used in the prior period.
The financial information in this announcement has been prepared under the
historical cost convention, adjusted for the revaluation of investment
properties in accordance with the accounting policies set out in the Company's
Report and Accounts for the prior period. Such information does not constitute
statutory accounts within the meaning of section 434 of the Companies Act 2006
for the year ended 31 December 2009 and period ended 31 December 2008. The
financial information for the prior period ended 31 December 2008 is derived
from the statutory accounts for that period which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under s237(2) or (3) of the
Companies Act 1985.
The preliminary announcement has been prepared on the basis of the financial
information presented by the directors in the statutory accounts for the year
ended 31 December 2009 which will be delivered to the Register of Companies
following the company's annual general meeting.
[HUG#1398006]
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 29.03.2010 - 03:00 Uhr
Sprache: Deutsch
News-ID 1012108
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
Isle Of Man
Phone:
Kategorie:
Business News
Anmerkungen:
Diese Pressemitteilung wurde bisher 222 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Puma Hotels - Final Results for the year ended 31 December 2009
"
steht unter der journalistisch-redaktionellen Verantwortung von
The Hotel Corporation plc (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
